Canadian Northern Economic Development Agency's 2022-2023 Departmental Results Report

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ISSN 2561-2921

From the Minister

It is my pleasure to present the 2022-2023 Departmental Results Report for the Canadian Northern Economic Development Agency (CanNor).

In 2022-23, CanNor remained committed to helping meet the evolving economic needs of all Northerners. By continuing its collaboration with our territorial and Indigenous partners, CanNor contributed to supporting the development of a diversified, inclusive, innovative and sustainable economy across the territories. This included support for territorial businesses through strategic investments, working with Indigenous enterprises and organizations, territorial communities, and the private sector to create greater economic opportunities.

CanNor’s efforts promoted short- and long-term job creation and economic development across the territories, particularly through the delivery of regionally tailored programs, services, knowledge, and expertise.

The Agency's Departmental Results Report describes many initiatives from over the past year which illustrate a commitment to building a dynamic and growing economy across the North and Arctic – one that creates jobs, opportunities and a better quality of life for business owners, families and Indigenous Peoples in the territories, and for the benefit of all Northerners.

We invite you to read this report to learn more about how CanNor is building long-term economic sustainability and prosperity in the territories.

From the President

In 2022-23, CanNor continued to deliver on its objectives and worked hard to help build a stronger, more resilient and dynamic Northern economy for families and businesses in the territories, and for the benefit of all Canadians. As the Regional Development Agency for the territories, CanNor continued to play a pivotal role in helping the Northern economy develop, innovate and grow particularly as the territories expand their economies post pandemic.

Guided by our Pan-Territorial Growth Strategy and aligned with the Arctic and Northern Policy Framework, CanNor continued to focus our strategy on four key pillars: developing a skilled Northern workforce, strategic infrastructure investments, resource development, and diversification and innovation.

The Agency continued to support territorial businesses and entrepreneurs through our regular economic development programming, including the Inclusive Diversification and Economic Advancement in the North program – an initiative that delivers foundational investments in economic infrastructure, sector development, and capacity-building in Nunavut, the Northwest Territories, and the Yukon.

Pilimmaksaivik (the Federal Centre of Excellence for Inuit Employment in Nunavut), an important part of CanNor, is responsible for coordinating a whole-of-government approach to building a representative federal public service in Nunavut. Through various programs, services, and initiatives, Pilimmaksaivik supported the Government of Canada's commitments under Article 23 of the Nunavut Agreement.

CanNor's Northern Projects Management Office (NPMO) continued to play an important coordinating and convening role. This included facilitating federal participation in environmental assessments for infrastructure and resource development projects, while also ensuring the adequacy of Crown consultations with Indigenous communities. NPMO also provided pathfinding and convening services for industry, investors, regulatory boards and territorial governments.

As we move forward, CanNor remains committed to supporting the growth and development of the territorial economies. By partnering with communities, Indigenous peoples, businesses, industry, and various levels of government, CanNor works to help improve the quality of life for Northerners.

Results at a glance

What funds were used? (2022-2023 Actual Spending)	Who was involved? (2022-23 Actual FTEs)
$105,077,343	112

As one of Canada's seven Regional Development Agencies (RDA), the Canadian Northern Economic Development Agency (CanNor) is responsible for supporting economic development in the territories. The Agency is guided by its Pan-Territorial Growth Strategy, a 5-year roadmap to robust and inclusive economies across the Yukon, Northwest Territories, and Nunavut. Our Strategy advances economic growth based on the unique strengths of the territories through four interrelated areas of action: skilled workforce, infrastructure investments and development, resource development and economic diversification and innovation. In addition, our strategy supports the implementation of the Arctic and Northern Policy Framework a long-term, strategic vision for Canada’s Arctic and North. This vision will guide the federal government’s activities and investments in the Arctic to 2030 and beyond to better align Canada’s national and international policy objectives with regional and Indigenous priorities.

Departmental Result Spotlight

People and communities participate in the economy in the territories

With support from the Northern Indigenous Economic Opportunities Program, the Tłı̨ chǫ Government conducted a multi-year project that supported economic development, Indigenous businesses and entrepreneurs in the four Tłı̨ chǫ communities. Project activities increased the economic capacity of businesses to engage in the tourism industry.

Business are developing in the territories

With support from the Inclusive Diversification and Economic Advancement in the North Program, Kaska Dena Designs, an Indigenous-owned fashion and jewelry business based in the Yukon, expanded its operations through participation in international fashion shows in New York and Paris, the purchase of sewing equipment, and rental of studio space to increase production.

Efficient and predictable environmental review process in the territories

Through the Northern Projects Management Office, CanNor oversaw Crown consultation activities for nine environmental assessments, including three in Nunavut and six in the Yukon, and provided advisory services including issues management and support in the environmental assessment and governance processes to 63 companies.

With the sunsetting of time-limited COVID-19 funding in 2022-23, CanNor continues to help northern businesses and communities position themselves to take advantage of renewed economic opportunities throughout the territories through our interrelated business lines and services. Across the territories, CanNor funded emerging and growing sectors. For example, in 2022-23, an estimated $12.5 million was provided to the tourism sector, alongside $2 million to the agriculture sector, and $6.2 million to the fisheries sector.

For more information on CanNor’s plans, priorities and results achieved, see the "Results: what we achieved" section of this report.

Results: what we achieved

Core responsibilities

Economic Development in the Territories

Description: Working in the three territories to support the conditions for a sustainable, diversified and innovative economy in collaboration with Northerners/Indigenous people, businesses, organizations, other federal departments and other levels of government.

Economic Context in the Territories

Having navigated significant upheaval in recent years, economic recovery in the territories is at an advanced stage. In 2022, GDP expanded in the Yukon by an estimated 5.5% and 2.0% in Nunavut while contracting in the Northwest Territories by an estimated 0.4%. In 2022, territorial labour markets rebounded and job gains pushed unemployment rates to 3.7% in the Yukon, and 5.0% in the Northwest Territories. In Nunavut, employment fully rebounded from declines caused by the pandemic. Compared to the provinces, the territories have a relatively young population but the population is aging in Yukon and Northwest Territories. In Nunavut, the median age in 2021-22 was 26.9 compared with 41 in Canada. Nunavut’s distinct age structure has implications for health services and housing needs, and creates unique labour market pressures. Infrastructure development, which is improving in the territories, remains a barrier to greater economic diversification and private investment in Nunavut.

Source: The Conference Board of Canada

Results

As the country emerged from the pandemic, and public health measures eased, there were renewed economic opportunities for territorial businesses and communities. In 2022-23, CanNor continued to support economic recovery in the territories through the delivery of Budget 21 COVID-19 recovery initiatives. CanNor delivered more than $25 million to 88 projects, with emphasis placed on supporting Indigenous-owned businesses and businesses operating in the tourism sector, supporting northern jobs, and enhancing community and business infrastructure. For example:

In the Yukon, CanNor delivered $295,000 through the Jobs and Growth Fund to the Association franco-yukonnaise to support a targeted tourism marketing campaign that focused on the domestic market within Quebec. The focus of the campaign was to raise awareness of the Yukon as a travel destination and increase visits from French-speaking markets.
In the Northwest Territories, $150,000 was provided through the Canada Community Revitalization Fund to Folk on the Rocks to support the purchase and installation of mobility mats, which increased the accessibility of their festival grounds, expanded their community outreach, and allowed the organization to share arts and culture activities with community members and tourists alike.
In Nunavut, CanNor delivered $460,000 through the Tourism Relief Fund to the Hamlet of Pond Inlet to support a destination development project that will expand tourist attraction sites and position the municipality for future growth as the northern cruise industry recovers following the pandemic. The project work consists of building and enhancing visitor infrastructure throughout the municipality.

Regular programming:

Departmental Result: People and Communities Participate in the Economy in the Territories

CanNor is committed to working with its partners and stakeholders to build strong and economically sustainable northern communities for residents across the territories. Recognizing the unique challenges facing these communities, many of which are small and remote, CanNor works with its community partners to identify key areas for investment. This includes enhancing community capacity to benefit from major projects, supporting skills development at both the organizational and individual levels, and making investments to improve local infrastructure. CanNor delivers several programs that help communities create the conditions necessary for short- and long-term economic growth and development.

In 2022-23, CanNor worked with Indigenous communities to increase their capacity to participate in and benefit from economic opportunities, strengthening the northern workforce and helping equip Northerners with the tools, skills, and experience needed to succeed now and into the future. Through the Northern Indigenous Economic Opportunities Program’s Community Readiness and Opportunities Planning (CROP) fund, CanNor provided nearly $6.8 million to 29 Indigenous right holders as core funding. This funding provides financial support to First Nations, Inuit, Métis and non-status Indigenous communities so they can improve their capacity and prepare to plan for, pursue, and participate in economic opportunities.

In addition, almost $3 million was provided as project-based CROP funding to 13 recipients. For example:

In the Yukon, CanNor delivered over $450,000 to First Kaska General Partnership Limited, the economic development arm of the Liard First Nation, towards a three-year project for purchase of heavy equipment to support their capacity to bid on local reconstruction and heavy equipment operations contracts that provide direct benefits to the First Nation and their citizens.
In the Northwest Territories, CanNor provided more than $76,000 to the Tetl’it Zheh Development Corporation (TZDC), the economic development arm of the Teetl’it Gwich’in Band, for the third year of its three-year garage services renovation and expansion project. Through this project, TZDC improved its business capacity to take advantage of economic opportunities through staffing, business planning, and improvements to its existing commercial facilities.
In Nunavut, CanNor provided nearly $150,000 to Nunavut Nukkiksautiit Corporation for its Community Clean Energy Infrastructure Ownership Model Review Project, which will identify, assess, and provide recommendations on appropriate business models for community-led and Inuit-owned renewable energy projects throughout the territory.

The Northern Adult Basic Education Program was CanNor’s post-secondary education support program designed to equip northern participants with the training needed to participate more fully in the labour market. In 2022-23, CanNor provided almost $4.3 million through this program to Aurora College in the Northwest Territories, Nunavut Arctic College, and Yukon University, to enhance availability of culturally appropriate programs and courses in adult basic education to better serve working-age Indigenous Peoples and Northerners.

In 2022-23, CanNor’s Northern Isolated Community Initiatives fund entered its fourth year. The aim of this program is to enhance Indigenous and northern food security by supporting local, community-led projects that reduce dependence on the southern food industry. CanNor continues to work with federal and territorial partners under this five-year investment to promote a strong territorial food industry and reduce food insecurity. In 2022-23, CanNor provided almost $2.5 million for 30 projects, including:

Nearly $24,000 to Bee’s Pantry Farm in the Yukon to support business operations expansion through the construction of a multi-purpose building that will allow for the overwintering of bees and provide spaces for honeybee education and the processing of value-added farm products.
More than $100,000 to the Inuvialuit Community Economic Development Organization in the Northwest Territories to support the revitalization of the Mackenzie Delta Reindeer Herd through infrastructure development and specialized skills training. The project will increase regional food security and provide employment for Inuvialuit in the region.
$125,000 to the Hamlet of Cambridge Bay in Nunavut to develop and deliver comprehensive, integrated, culturally adapted, and innovative capacity-building resources and programs to support food security in the Kitikmeot region.

Departmental Result: Businesses are Developing in the Territories

In 2022-23, CanNor continued to support growth and expansion of territorial small- and medium-enterprises by providing funding and advisory services to businesses and communities. CanNor programs target business innovation and growth, as well as capacity building, and ultimately encourage a competitive and diverse territorial business sector with a strengthened capacity for innovation.

The Inclusive Diversification and Economic Advancement in the North (IDEANorth) program is one of CanNor’s flagship programs which the Agency uses to deliver on its northern economic development mandate. IDEANorth focuses on four priority areas: economic growth and sector development; business scale-up, productivity and innovation; small-scale economic infrastructure development; and foundational economic infrastructure.

In 2022-23, IDEANorth delivered over $33 million to 118 projects across the territories, including nearly $11 million for 40 projects that support business scale-up and market expansion. These projects spanned a variety of northern industries and businesses, ranging from commercial infrastructure to capacity building and business expansion. Examples include:

In Nunavut, CanNor delivered $300,000 through Stream 1 (Sector & Capacity Development) to Travel Nunavut to support job creation and economic recovery. This multi-year project, funded in partnership with Destination Canada and the Indigenous Tourism Association of Canada, helps Nunavut’s tourism sector rebound from the pandemic, and includes creation of marketing resources and digital media.
In the Northwest Territories, CanNor provided nearly $100,000 through Stream 2 (Business Scale-Up and Productivity) to the Inuvialuit Development Corporation to support the renovation of the Mackenzie Hotel restaurant in Inuvik. The project supports Indigenous business development in the territories, and will enhance community capacity for engagement in the regional tourism industry.
In the Yukon, CanNor delivered more than $2,000,000 through Stream 3 (Economic Infrastructure Construction – Small Scale) to Porcupine Enterprises, an Indigenous-owned company, to support a two-year project to design and build a mechanical workshop in Old Crow, a remote, fly-in community. This project will enable mechanical equipment to be repaired on-site, which will reduce maintenance costs and increase service life for critical equipment.
In Nunavut, CanNor provided $600,000 to the Nunavut Fisheries Association through Stream 4 (Economic Infrastructure Studies – Large Scale) to conduct targeted scientific research to support the territory’s growing fisheries sector. The project will continue to advance knowledge of Nunavut’s fisheries in order to support the sustainable development of the northern blue economy.

CanNor also works to bolster the diverse range of economic opportunities in the North with particular support given to business scale-up and market expansion, regional innovation ecosystems, and development of emerging sectors. Through the Northern Indigenous Economic Opportunities Program’s Entrepreneurship and Business Development fund, CanNor provided approximately $3.6 million dollars to eight Indigenous-led projects. This includes almost $3.4 million to four Indigenous delivery partners which are able to capitalize on their direct community linkages to support Indigenous businesses across the territories. CanNor’s funding afforded these Indigenous partners greater capacity to cultivate a culture of Indigenous entrepreneurship and increase the number of sustainable Indigenous businesses. The remainder of this fund was delivered directly by CanNor to applicants.

Canada’s regional development agencies are one of the ways that the government delivers on its Innovation and Skills Plan. RDAs deliver common programming to fuel economic growth through innovation and create more well-paying jobs for Canadians. In the territories, CanNor delivers two tailored programs:

The Regional Economic Growth through Innovation (REGI) program has been supporting business growth and innovation, helping regions to diversify with the goal of building stronger and more innovative communities across Canada. Funding through this program flows through its Business Scale-up and Productivity stream, which helps businesses accelerate their growth and adopt innovative technologies, and the Regional Innovation Ecosystems stream, which helps create, grow and develop strong and inclusive regional networks to support business growth and innovation. In 2022-23, CanNor delivered more than $900,000 in REGI funding to two projects in the Yukon, which support the northern entrepreneurship and innovation ecosystem.
The Women Entrepreneurship Strategy is a whole-of-government strategy that continues to work toward the goal of increasing the number of women-owned businesses in Canada. In 2022-23, CanNor provided nearly $600,000 to two projects, including $200,000 to dänä Näye Ventures in the Yukon to support the Indigenous Women Entrepreneurs microloan program.

Departmental Result: Efficient and Predictable Environmental Review Process in the Territories

Through our Northern Projects Management Office, CanNor works with industry, northern governments, communities, Indigenous Peoples, and other partners to promote sustainable and responsible resource and major infrastructure development across the territories, supporting economic growth and long-term prosperity for Northerners and all Canadians.

CanNor facilitates environmental review processes by coordinating federal input for proposed major development projects. It has a mandate to improve the timeliness, predictability, and transparency of northern regulatory processes to foster sustainable resource development and a more stable and attractive investment climate. As the Crown consultation coordinator for major projects in the territories, CanNor proactively advocates for meaningful Indigenous participation in environmental and socio-economic assessment processes. CanNor provides information and guidance to Indigenous organizations to assist them in their participation in the environmental assessment and regulatory review process. CanNor also provides advice to proponents on initiating early and meaningful engagement with Indigenous groups.

In 2022-23, CanNor coordinated the Government of Canada’s participation in nine territorial assessments; six in the Yukon, and three in Nunavut. In addition, CanNor continues to coordinate territorial assessments for multiyear projects and projects with timelines that were delayed by COVID-19.

As part of its role as a convener and pathfinder, CanNor coordinates with federal departments, industry proponents, regulatory boards and Indigenous groups, including participation in board-organized public hearings and technical meetings, and coordination of Crown consultation activities. This included support to the Intergovernmental Working Group on the Northern Mineral Sector, which helped advance the federal government’s pandemic recovery agenda.

CanNor provides advisory services, pathfinder services, and issues management to companies, Boards, territorial Chambers of Mines, and international investors seeking guidance on northern regulatory processes.

Other activities to support CanNor’s Core Responsibility:

Pilimmaksaivik

CanNor hosts Pilimmaksaivik, the Federal Centre of Excellence for Inuit Employment in Nunavut. In 2022-23, Pilimmaksaivik continued to support the whole-of-government approach to building a representative federal public service in Nunavut, including upholding its commitment under Article 23 of the Nunavut Agreement. Pilimmaksaivik does this by reducing barriers for recruitment, designing and delivering training that is supportive of Inuit culture and values, and overseeing initiatives that support workplace wellness with an aim to increase Inuit representation across departments and agencies operating in Nunavut.

Currently, Inuit representation across the federal workforce in Nunavut is at 50 percent. Pilimmaksaivik continues to deliver on its mandate through recruitment efforts such as the Inuksugait Resume Inventory, a platform for Nunavut Inuit to express interest and apply for work with the federal government. In 2022-2023, the Inuksugait Resume Inventory had 67 Nunavut Inuit applicants, and nine successful appointments.

Pilimmaksaivik also operates the Inuit Learning and Development Program (ILDP), a pre-employment and job training initiative aimed at helping Nunavut Inuit develop skills for careers in the federal public service within the territory. In 2022-23, the fourth cohort of the ILDP was launched with 10 participants. In addition, Pilimmaksaivik oversees the Ilipallianiq Education Support Fund, which supports Inuit within the federal government access post-secondary education. In 2022-23, funding was provided to six Inuit pursuing post-secondary studies that correlate with Government of Canada positions in Nunavut.

Pilimmaksaivik coordinates the Kittuaq Network, an all-Inuit Government of Canada employee network, which hosted meetings and presentations from Inuit elders and leaders. Pilimmaksaivik facilitated and organized a workshop that focused on educational and professional development opportunities available to Nunavut Inuit employees in the federal government. Pilimmaksaivik also hosted and supported a variety of other initiatives, including coordinating the Sivuliqtiurnimut Ilinniarniq Leadership Training in partnership with the Canada School of Public Service, and continues to ensure that employees have access to a variety of wellness supports to improve retention.

In addition, Pilimmaksaivik organizes training and cultural activities for federal employees to support the development of transferable skills across a variety of sectors. These include coordinating government-wide Inuit Qaujimajatuqangit Cultural Immersion Days and guided cultural learning events. In 2022-23, Pilimmaksaivik hosted two cultural immersion events for almost 80 participants from the federal government.

Policy and Advocacy

One of CanNor’s key business functions is to advocate for economic development in the territories by working with partners to align and sequence ongoing and new initiatives to optimize northern economic development, with a focus on advancing Indigenous-led economic development, and by serving as a voice for northern needs in federal processes.

In 2022-23, CanNor participated in a variety of fora to support other federal departments, advisory committees, territorial governments, and Indigenous organizations to advance the Government of Canada’s priorities and federal policy initiatives in the territories. CanNor continued to advocate for place-based approaches to northern economic development including participating in panels on this issue at the 2022 Arctic Development Expo and the Arctic 360 Conference.

CanNor also plays a leadership role in the rural working group for the Organization for Economic Co-operation and Development (OECD) ensuring that territorial and Indigenous informed perspectives are represented in the Canadian case study for rural innovation. In 2022-23, CanNor organized the OECD-Canada Rural Innovation Project and mission in Inuvik, Northwest Territories.

CanNor supports other Government of Canada departments and agencies by sharing northern-based knowledge and expertise. This includes active participation in the Inuit-Crown Partnership Committee (ICPC) and a co-chair role within an economic working group under that Committee. In 2022-23, CanNor established and acted as the Secretariat for the RDA Inuit Nunangat Policy Working Group. Under a shared minister, CanNor also worked closely with the Northern Affairs Organization of Crown-Indigenous Relations and Northern Affairs Canada to provide support for the implementation of the Arctic and Northern Policy Framework and to help advance broader Government of Canada commitments, including economic reconciliation.

In 2022-23, CanNor initiated work activities in support of its planned evaluation of IDEANorth.

Gender-based analysis plus

In 2022-23, CanNor continued to implement the Gender-Based Analysis Plus (GBA Plus) Action Plan focusing on development of internal GBA Plus tools and resources tailored to the Agency’s functional areas. CanNor also initiated an internal needs assessment to guide a renewal of its GBA Plus Action Plan including intersection with other Agency strategies (e.g., Diversity, Inclusion and Accessibility).

United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals

CanNor is a contributor to the Government of Canada’s efforts to advance the United Nations’ 2030 Sustainable Development Goals (SDGs). In 2022-23, CanNor’s investments helped to create and maintain jobs and enhanced economic opportunities to further sustainable development goals, contributing towards:

SDG #2 – [The ensuring of] zero hunger.
CanNor’s investments contributed towards SDG # 2.4, ensuring sustainable food production systems and implementing resilient agricultural practices that increase productivity and production, that help maintain ecosystems, and that strengthen capacity for adaptation to climate change.
SDG #8 – [The promotion of] sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
CanNor’s investments contributed toward SDG #8.3, the promotion of development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity, and innovation, and encourage the formalization and growth of micro-, small-, and medium-sized enterprises, including through access to financial services.
SDG #9 – [The building of] resilient infrastructure, inclusive and sustainable industrializa-tion, and innovation.
CanNor’s investments contributed toward SDG #9.1, the development of quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
SDG #12 – [The ensuring of] sustainable consumption and production patterns.
CanNor’s investments contributed toward SDG #12.6, the encouragement of companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle.

Innovation

The Northern Food Innovation Challenge (NFIC) constitutes a new approach to addressing socio-economic challenges, and represents an investment of over $2 million from the Government of Canada in food security. This challenge supports community-led projects for local and Indigenous-led food production, transformation, transportation and distribution to help enhance food security in the territories, with the goal of spurring innovation and highlighting new techniques.

In 2022-23, CanNor provided support for the nine projects selected to advance to Phase 1 of the challenge to attend the ArcticNet Annual Scientific Meeting in Toronto where the innovators participated in a showcase and shared best practices with a diverse audience of Arctic researchers, policymakers, and practitioners. CanNor also facilitated a series of catalyst workshops, where innovators received direct support from the interdisciplinary NFIC advisory committee, comprised of northern experts from a variety of disciplines. In Winter 2023, CanNor facilitated the Phase 2 assessments for the challenge using an interactive video submission format chaired by members of the Advisory Committee. This was the first time CanNor used this assessment approach which encouraged open dialogue and information-sharing with the proponents while still abiding by formal application requirements. Successful applications for Phase 2 of the Challenge will be provided with up to $1 million each to fund the further development of their respective projects; recipients will be announced later in 2023.

Key Risks

The following are the key risks and response strategies associated with achieving CanNor's results on the Core Responsibility of Economic Development in the Territories:

COVID-19 Impact: As Canada emerges from the COVID-19 pandemic, certain sectors and regions may not recover evenly or return to pre-pandemic levels due to the unknown lasting effects of the pandemic.
- CanNor contributed to economic recovery efforts by addressing gaps through the delivery of its programs, and by working with northern and Indigenous partners to identify opportunities and challenges going forward.
Infrastructure Deficit and Construction Delays: Higher capital and operating costs compared to southern Canada and the challenges of distance and geography have resulted in a core infrastructure deficit, including connectivity, and constrained opportunities for northern economic development which impact the effectiveness of CanNor's programming. In addition, the pandemic has delayed construction projects that are key for economic development in the territories.
- In 2022-23, CanNor worked with partners to inform and advocate with respect to territorial infrastructure priorities. The Agency invested in a range of economic infrastructure projects in order to increase community readiness and resilience.
Labour Market: Due to the labour force challenges, northern employers across sectors rely on workers from outside the territories. This shortage of labour delays projects and business development. It also increases competition for the limited local talent pool. At the same time, there are Northerners in certain regions who could help address these shortages provided that they have access to skills training including post-secondary education and accreditation.
- In 2022-23, CanNor made investments that support skills development in the North in order to help strengthen and increase the labour force availability for the private and public sectors and decrease dependency on labour from outside of the territories. Moreover, through CanNor's continued investment in the territories, the Agency will help build diversified and dynamic economics that foster long-term sustainability and labour market growth.
Limited Economic Diversification: A high degree of reliance on the public service and resource development sectors have resulted in limited diversification and an increased vulnerability to the cyclical changes in commodity prices.
- CanNor made investments to leverage other regional economic sectors to help mitigate the cyclical nature of the resource sector and expand the private sector. Given the stress-es that the COVID-19 pandemic has placed upon tourism in the territories, support for this sector focused on recovery as the industry is not expected to return to pre-pandemic levels in the immediate term. In addition, CanNor continued to implement its Pan-Territorial Growth Strategy to advance inclusive economic growth based on the unique strengths and opportunities of the territories.

Results achieved

The following table shows, for Economic Development in the Territories, the results achieved, the performance indicators, the targets and the target dates for 2022–23, and the actual results for the three most recent fiscal years for which actual results are available.

Departmental results	Performance indicators	Target	Date to achieve target	2020-21 actual results	2021-22 actual results	2022–23 actual results
People and communities participate in the economy in the territories	Labour participation rate for women and Indigenous peoples in the territories	Equal or higher than the national average*	March 31, 2023	Women: 65.8% Indigenous: 53.0%	Women: 66.9% Indigenous: 59.5%	Women: 66.8% Indigenous: 60.7**
	Amount leveraged per dollar invested in community projects in the territories	1.25	March 31, 2023	1.21	3.22	1.70
Business are developing in the territories	Number of businesses by business locations in the territories	4,425	March 31, 2023	4,348	4,163	4,189***
Business are developing in the territories	Number of investments in clean tech projects supported by CanNor in the territories	15	March 31, 2023	12	17	16
Efficient and predictable environmental review process in the territories	Number of companies provided advisory services (Pathfinder) including issues management and support in the environmental assessment and governance processes in the Territories	40	March 31, 2023	21	42	63
	Percent of environmental assessments in the Territories that are completed within the scheduled time frame	100%	March 31, 2023	100%	87.5%	66%****
* The national averages to be measured against are those of 2016-17, i.e., Indigenous participation rate of 61.4% and women participation rate of 61.0%. Although Indigenous labour participation has increased since 2021-22, it is still below the national average at the time the target was set. Statistics Canada indicates the COVID-19 pandemic affected employment of Indigenous Peoples, and the employment recovery of Indigenous Peoples has been slower that non-Indigenous peoples. * In 2023, Statistics Canada reported a nationwide decline in the number of active businesses due to contractions in retail trade, accommodation, and food services. According to the Canadian Survey on Business Conditions, key obstacles facing businesses were inflation, rising cost of inputs, and recruitment and retention of skilled employees. **** Three environmental assessments were completed in the territories in 2022-23. The Kudz Ze Kayah decision in the Yukon was delayed beyond legislated timelines due to both the pandemic and extended consultations and engagement with the First Nations and the Proponent. The environmental assessment concluded in June 2022.

Financial, human resources and performance information for the Canadian Northern Economic Development Agency’s program inventory is available in GC InfoBase.

Budgetary financial resources (dollars)

The following table shows, for Economic Development in the Territories, budgetary spending for 2022–23, as well as actual spending for that year.

2022–23 Main Estimates	2022–23 planned spending	2022–23 total authorities available for use	2022–23 actual spending (authorities used)	2022–23 difference (actual spending minus planned spending)
86,116,904	86,132,880	100,540,835	96,503,091	10,370,211

The variance between actual and planned spending primarily arises from the inclusion of additional in-year funding. This additional funding was used to extend the Northern Adult Basic Education Program and enhance the Northern Indigenous Economic Opportunities Program, reflecting the government's commitment to investing in these important programs.

The variance between the actual and the total authorities available for use is mainly attributed to the program spending being lower than anticipated due to the unique challenges of conducting business in the North across three territories such as high turnover rates and extension of G&C projects to future years.

Financial, human resources and performance information for the Canadian Northern Economic Development Agency’s program inventory is available in GC InfoBase.

Human resources (full-time equivalents)

The following table shows, in full time equivalents, the human resources the department needed to fulfill this core responsibility for 2022–23.

2022–23 planned full-time equivalents	2022–23 actual full-time equivalents	2022–23 difference (actual full time equivalents minus planned full time equivalents)
94	80	(14)

The difference between actual and planned full-time equivalents is due primarily to employee turnover.

Financial, human resources and performance information for the Canadian Northern Economic Development Agency’s program inventory is available in GC InfoBase.

Internal services

Description

Internal services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal services refers to the activities and resources of the 10 distinct service categories that support program delivery in the organization, regardless of the internal services delivery model in a department. The 10 service categories are:

acquisition management services
communication services
financial management services
human resources management services
information management services
information technology services
legal services
material management services
management and oversight services
real property management services

In 2022-23, CanNor continued to modernize the Agency's web presence and enhance its use of social media platforms to meet the needs of clients, proponents, partners and stakeholders. This included the addition of a number of feature stories, highlighting a variety of CanNor-supported projects across the territories. In addition, CanNor’s 2023-2024 Expression of Interest (EOI) was launched in October 2022, and a robust social media plan, across all of our platforms, accompanied the web content to ensure the greatest possible outreach to our potential proponents.

In 2022-23, CanNor completed an internal review of corporate services to better position itself for the needs of the future. CanNor continues to work with partner departments and suppliers to improve cloud-based technology adoption, network connectivity, infrastructure, and performance in the Agency Headquarters and regional offices. Work continues on reviewing and updating financial management and procurement controls and processes. In 2022-23, CanNor updated its internal tracker for Indigenous Procurement and enhanced its resource costing methods for Treasury Board submissions.

CanNor remains committed to ensuring a work environment in which employees are supported, enabled, and empowered to contribute to a healthy, high-performing workplace that advances the Agency’s overall business priorities and delivers results for Northerners. In 2022-23, CanNor launched its Inclusion, Equity & Accessibility Strategy to advance the Agency’s commitments to a healthy, diverse and innovative workplace in support of government-wide priorities.

CanNor continues to work towards setting up a new physical space for Pilimmaksaivik to enhance public accessibility. This project is on track to be completed by March 2024.

Contracts awarded to Indigenous businesses

The Government of Canada is increasing economic opportunities for First Nations, Inuit and Métis businesses through the federal procurement process. The mandatory 5% minimum Indigenous procurement target is being implemented in 3 phases to allow departments and agencies to update planning and processes to support implementation.

The Canadian Northern Economic Development Agency is a Phase 3 organization having an aim to achieve the minimum 5% target by the end of 2024-25. In 2022-23, CanNor exceeded the 5% target. The Agency’s total contract amount was approximately $546,000; of this, more than $60,000 or 11% was awarded to Indigenous businesses.

CanNor receives procurement services from Indigenous Services Canada through a memorandum of understanding, and 100% of their officers have completed the necessary training through the Canada School of Public Service’s Considerations in Procurement (COR409) and Procurement in the Nunavut Settlement Area (COR410) courses. In 2022-23, CanNor also updated its internal tracker for Indigenous procurement. In addition, CanNor is committed to adding the to its learning plan for all staff.

Budgetary financial resources (dollars)

The following table shows, for internal services, budgetary spending for 2022–23, as well as spending for that year.

2022–23 Main Estimates	2022–23 planned spending	2022–23 total authorities available for use	2022–23 actual spending (authorities used)	2022–23 difference (actual spending minus planned spending)
6,718,312	6,718,312	8,200,360	8,574,252	1,855,940

The variance between the planned spending and the total authorities available for use is due primarily to the Operating Budget Carry Forward^{Footnote 1} and in-year funding received for collective bargaining.

The variance between actual and planned spending is mainly related to an internal allocation from the core program to support the needs of programs and other corporate obligations of the organization.

Human resources (full-time equivalents)

The following table shows, in full time equivalents, the human resources the department needed to carry out its internal services for 2022–23.

2022–23 planned full time equivalents	2022–23 actual full time equivalents	2022–23 difference (actual full time equivalents minus planned full time equivalents)
34	32	(2)

The difference between actual and planned full-time equivalents is due primarily to employee turnover.

Spending and human resources

Spending

Spending 2020–21 to 2025–26

The following graph presents planned (voted and statutory spending) over time.

The decrease in planned spending from 2022-23 to 2024-25 is due to the expiry of the Budget 2019 and Budget 2021 initiatives and a partial reduction in funding for the IDEANorth program. The differences in actual spending each year reflect how the Agency's operations change and adapt to new circumstances in the North, such as shifts in program priorities, project timelines, and available funding. The difference between planned spending and the total funding available is due to additional funding received during the year for the one-year extension of the Northern Adult Basic Education Program and the expansion of the Northern Indigenous Economic Opportunities Program, as well as the operating budget carry forward and in-year funding received for collective bargaining. Planned spending does not include initiatives announced in Budget 2023 due to the timing of authorities.

Budgetary performance summary for core responsibilities and internal services (dollars)

The "Budgetary performance summary for core responsibilities and internal services" table presents the budgetary financial resources allocated for the Canadian Northern Economic Development Agency’s core responsibilities and for internal services.

Core responsibilities and internal services	2022–23 Main Estimates	2022–23 planned spending	2023–24 planned spending	2024–25 planned spending	2022–23 total authorities available for use	2020–21 actual spending (authorities used)	2021–22 actual spending (authorities used)	2022–23 actual spending (authorities used)
Economic Development in the Territories	86,116,904	86,132,880	73,758,232	44,825,188	100,540,835	92,172,174	80,292,203	96,503,091
Subtotal	86,116,904	86,132,880	73,758,232	44,825,188	100,540,835	92,172,174	80,292,203	96,503,091
Internal services	6,718,312	6,718,312	7,674,630	5,978,872	8,200,360	9,047,110	8,079,311	8,574,252
Total	92,835,216	92,851,192	81,432,862	50,804,060	108,741,195	101,219,284	88,371,514	105,077,343

The decrease in planned spending from 2022-23 to 2024-25 is primarily a result of the sunsetting of Budget 2019 and Budget 2021 funding measures and partial funding reduction of the IDEANorth program. CanNor is seeking to extend authorities for projects which expired in March 31, 2023, into future years.

The year-over-year variances in actual spending reflects the dynamic nature of the Agency’s operations and the need to adapt to evolving circumstances in the North due to the shifts in program priorities, changes in project timelines, and variations in funding availability.

The variance between planned spending and the total authorities available for use is due to the inclusion of additional in-year funding received to extend the Northern Adult Basic Education Program and enhance the Northern Indigenous Economic Opportunities Program, as well as the Operational Budget Carry Forward and collective bargaining funding received in-year. As a result, the total authorities available for use exceeded the originally planned spending.

Human resources

The "Human resources summary for core responsibilities and internal services" table presents the full-time equivalents (FTEs) allocated to each of CanNor’s core responsibilities and to internal services.

Human resources summary for core responsibilities and internal services

Core responsibilities and internal services	2020–21 actual full time equivalents	2021–22 actual full time equivalents	2022–23 planned full time equivalents	2022–23 actual full time equivalents	2023–24 planned full time equivalents	2024–25 planned full time equivalents
Economic Development in the Territories	80	89	94	80	91	76
Subtotal	80	89	94	80	91	76
Internal services	26	29	34	32	31	28
Total	106	118	128	112	122	104

The year-over-year variances in actual full-time equivalents mainly resulted from employee turnover.

The decrease in planned full-time equivalents through 2024-25 is mainly due to the sunsetting of Budget 2021 initiatives, the time-limited funding for the IDEANorth program and "A Food Policy for Canada" - Northern Isolated Communities Initiative. Sunsetting funding is subject to government decisions to extend, reduce, or enhance funding. The outcomes of such decisions would be reflected in the Agency's future budget exercises and Estimates documents.

Expenditures by vote

For information on Canadian Northern Economic Development Agency’s organizational voted and statutory expenditures, consult the Public Accounts of Canada.

Government of Canada spending and activities

Information on the alignment of Canadian Northern Economic Development Agency’s spending with Government of Canada’s spending and activities is available in GC InfoBase.

Financial statements and financial statements highlights

Financial statements

Canadian Northern Economic Development Agency’s financial statements (unaudited) for the year ended March 31, 2023, are available on the department’s website.

Financial statement highlights

Condensed Statement of Operations (unaudited) for the year ended March 31, 2023 (dollars)
Financial information	2022–23 planned results	2022–23 actual results	2021–22 actual results	Difference (2022–23 actual results minus 2022–23 planned results)	Difference (2022–23 actual results minus 2021–22 actual results)
Total expenses	87,791,626	100,318,688	79,114,701	12,527,062	21,203,987
Total revenues	4,133	177	0	(3,956)	177
Net cost of operations before government funding and transfers	87,787,485	100,318,511	79,114,701	12,531,026	21,203,810

The 2022–23 planned results information is provided in Canadian Northern Economic Development Agency’s Future-Oriented Statement of Operations and Notes 2022–23.

Condensed Statement of Financial Position (unaudited) as of March 31, 2023 (dollars)
Financial information	2022–23	2021–22	Difference (2022–23 minus 2021–22)
Total net liabilities	55,221,100	36,971,943	18,249,157
Total net financial assets	54,016,227	35,499,227	18,517,000
Departmental net debt	1,204,873	1,472,717	(267,844)
Total non-financial assets	70,260	92,134	(21,874)
Departmental net financial position	(1,134,613)	(1,380,583)	(245,970)

The 2022–23 planned results information is provided in Canadian Northern Economic Development Agency’s Future-Oriented Statement of Operations and Notes 2022–23.

Corporate information

Organizational profile

Appropriate minister: The Honourable Dan Vandal, P.C., M.P., Minister of Northern Affairs, Minister responsible for Prairies Economic Development Canada and Minister responsible for the Canadian Northern Economic Development Agency

Institutional head: Paula Isaak, President

Ministerial portfolio: Canadian Northern Economic Development Agency

Enabling instrument[s]: Public Service Rearrangement and Transfer of Duties Act, R.S.C. 1985, c. P-34

Year of incorporation / commencement: 2009

Raison d’être, mandate and role: who we are and what we do

"Raison d’être, mandate and role: who we are and what we do" is available on the Canadian Northern Economic Development Agency’s website.

For more information on the department’s organizational mandate letter commitments, see the Minister’s mandate letter.

Operating context

Information on the operating context is available on the Canadian Northern Economic Development Agency’s website.

Reporting framework

The Canadian Northern Economic Development Agency’s departmental results framework and program inventory of record for 2022–23 are shown below:

Departmental Results Framework
- Core Responsibility: Economic Development in the Territories
  - Departmental Result: People and communities participate in the economy in the Territories
    - Indicator: Labour participation rate for women and Indigenous peoples in the Territories
    - Indicator: Amount leveraged per dollar invested in community projects in the Territories
  - Departmental Result: Business are developing in the Territories
    - Indicator: Number of businesses by business locations in the Territories
    - Indicator: Number of investments in clean tech projects supported by CanNor in the Territories
  - Departmental Result: Efficient and Predictable Environmental Review process in the Territories
    - Indicator: Number of companies provided advisory services (Pathfinder) including issues management and support in the environmental assessment and governance processes in the territories
    - Indicator: Percentage of environmental assessments in the Territories that are completed within the scheduled timeframe
Program Inventory
- Program: Community Development
- Program: Business Development
- Program: Policy and Advocacy
- Program: Northern Projects Management

Supporting information on the program inventory

Financial, human resources and performance information for the Canadian Northern Economic Development Agency’s program inventory is available in GC InfoBase.

Supplementary information tables

The following supplementary information tables are available on the Canadian Northern Economic Development Agency’s website:

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information and references to related federal spending programs as well as evaluations and GBA Plus of tax expenditures.

Organizational contact information

Head Office:
Allavvik Building
1106 Inuksugait Plaza
Iqaluit, Nunavut X0A 0H0
Canada

Telephone: 1-855-897-2667
Email: infonorth-infonord@cannor.gc.ca
Website(s): Canadian Northern Economic Development Agency Website

Appendix: definitions

appropriation
Any authority of Parliament to pay money out of the Consolidated Revenue Fund.

budgetary expenditures
Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.

core responsibility
An enduring function or role performed by a department. The intentions of the department with respect to a core responsibility are reflected in one or more related departmental results that the department seeks to contribute to or influence.

Departmental Plan
A report on the plans and expected performance of an appropriated department over a 3 year period. Departmental Plans are usually tabled in Parliament each spring.

departmental priority
A plan or project that a department has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired departmental results.

departmental result
A consequence or outcome that a department seeks to achieve. A departmental result is often outside departments’ immediate control, but it should be influenced by program-level outcomes.

departmental result indicator
A quantitative measure of progress on a departmental result.

departmental results framework
A framework that connects the department’s core responsibilities to its departmental results and departmental result indicators.

Departmental Results Report
A report on a department’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.

full time equivalent
A measure of the extent to which an employee represents a full person year charge against a departmental budget. For a particular position, the full time equivalent figure is the ratio of number of hours the person actually works divided by the standard number of hours set out in the person’s collective agreement.

gender-based analysis plus (GBA Plus)
An analytical tool used to support the development of responsive and inclusive policies, programs and other initiatives; and understand how factors such as sex, race, national and ethnic origin, Indigenous origin or identity, age, sexual orientation, socio-economic conditions, geography, culture and disability, impact experiences and outcomes, and can affect access to and experience of government programs.

government-wide priorities
For the purpose of the 2022–23 Departmental Results Report, government-wide priorities are the high-level themes outlining the government’s agenda in the November 23, 2021, Speech from the Throne: building a healthier today and tomorrow; growing a more resilient economy; bolder climate action; fighter harder for safer communities; standing up for diversity and inclusion; moving faster on the path to reconciliation; and fighting for a secure, just and equitable world.

horizontal initiative
An initiative where two or more federal organizations are given funding to pursue a shared outcome, often linked to a government priority.

non budgetary expenditures
Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.

performance
What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.

performance indicator
A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.

performance reporting
The process of communicating evidence based performance information. Performance reporting supports decision making, accountability and transparency.

plan
The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.

planned spending
For Departmental Plans and Departmental Results Reports, planned spending refers to those amounts presented in Main Estimates.
A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their Departmental Plans and Departmental Results Reports.

program
Individual or groups of services, activities or combinations thereof that are managed together within the department and focus on a specific set of outputs, outcomes or service levels.

program inventory
Identifies all the department’s programs and describes how resources are organized to contribute to the department’s core responsibilities and results.

result
A consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization’s influence.

Indigenous business
For the purpose of the Directive on the Management of Procurement Appendix E: Mandatory Procedures for Contracts Awarded to Indigenous Businesses and the Government of Canada’s commitment that a mandatory minimum target of 5% of the total value of contracts is awarded to Indigenous businesses, an organization that meets the definition and requirements as defined by the Indigenous Business Directory.

statutory expenditures
Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.

target
A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.

voted expenditures
Expenditures that Parliament approves annually through an appropriation act. The vote wording becomes the governing conditions under which these expenditures may be made.

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Date modified:: 2023-12-06